Cash isn't King!
If only you had a nickel for every time you heard your client say that!
Here are just a few reasons why merchandise outperforms cash when motivating employees or providing incentives for customers or channel partners:
- merchandise is never confused with compensation
- merchandise offers "trophy value" (gives the recipient something to show while they're telling about their accomplishment at work)
- merchandise rewards are memorable (cash is often frittered away on gas or groceries)
- brand-name merchandise can reinforce the company's or product's brand attributes
- merchandise rewards offer residual value (every time the recipient sees or uses the reward, they remember the accomplishment and why they received it)
- merchandise offers tax advantages (cash is taxed as compensation; merchandise is taxed at "fair market value" to recipients, and at the actual price paid to companies)
- merchandise offers budget flexibility (when budgets are reduced, it's difficult to hide a reduction in cash rewards; it's very possible to reduce budgets when necessary while still offering a meaningful merchandise reward)
See the side bar for additional information from The IRF studies.
Contact us when you are looking for suggestions for your next merchandise program!
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